HONG KONG, Nov 23 (Bernama-BUSINESS WIRE) — CSOP US Large Oil & Gas Companies Daily (2x) Leveraged Product (7204.HK) and CSOP US Large Oil & Gas Companies Daily (-2X) Inverse Product (7505.HK) will be listed on Hong Kong Stock Exchange on 23 November, 2022. Aiming to help investor capture short-term investment opportunities brought by the high volatility of oil & gas companies, 7204.HK and 7505.HK provide investment results closely corresponding to leveraged (2x) daily performance & inverse (-2x) daily performance of Solactive US Large Oil & Gas Companies Index NTR (the “Index”) respectively. With listing price at around HKD 7.75 per unit of 7204.HK and 7505.HK, trading lot of 100 and management fee of 1.60%, 7204.HK and 7505.HK have received USD 5 million and USD 5 million initial investment correspondingly.
Oil & gas companies’ performances are highly correlated with oil & gas prices and volumes, which are determined by various factors, making oil & gas company stocks one of the most volatile sectors. US oil & gas companies are cyclical, therefore benefiting from the increasing economic activities which push up demand and prices of oil & gas. In addition, political and weather uncertainties affect oil & gas companies’ business. Trading opportunities emerge from the high short-term volatilities of US oil & gas stocks. As a result, the average daily turnover (ADT) of US oil & gas equity L&I products grew at CAGR of 22% in 2015-2022¹.
